KUALA LUMPUR: Malaysia’s vertically integrated construction company Sunway Construction Group Bhd (SunCon) recorded profit after tax and minority interests of RM103.6 million in second quarter ended June 30, 2026 (Q2’26), representing an increase of 24% from RM83.9 million in the corresponding quarter last year, despite a 31% decline in revenue to RM1 billion.
The stronger earnings performance was supported by improved profitability across both the construction and precast segments, alongside a more favourable project mix.
The construction segment registered revenue of RM941.6 million in Q2’26, compared with RM1.4 billion in Q2’25, as the corresponding quarter was boosted by accelerated progress on several data centre projects.
Notwithstanding the lower revenue, segmental PBT increased 3% to RM124.8 million, while PBT margin strengthened to 13.3% from 8.5%. The improved margin was mainly attributable to a more favourable project mix, with a higher proportion of Advanced Technology Facilities (ATF) projects.
The precast segment continued its growth trajectory, with Q2’26 revenue increasing 75% to RM76.1 million, while PBT rose more than fivefold to RM6.5 million.
For the six-month period ended June 30, 2026 (1H’26), the group recorded revenue of RM2 billion, compared with RM2.9 billion in the corresponding period last year. Despite the lower revenue, Patmi increased 39% year-on-year to RM222 million, reflecting improved profitability across both business segments.
The construction segment recorded revenue of RM1.9 billion and PBT of RM273.6 million in 1H’26. PBT rose 17% year-on-year, with the segment delivering its strongest six-month profit margin on record at 14.5%. This was supported by a more favourable project mix, accelerated progress on certain projects and the reversal of a provision following the recovery of a receivable.
Revenue for the precast segment more than doubled to RM148.2 million, while PBT increased more than fivefold to RM12.4 million in 1H’26. The stronger performance was driven by the ramp-up of ongoing projects and the finalisation of accounts for several projects.
The Group declared a single-tier second interim dividend of 4.0 sen per ordinary share for the financial year ending Dec 31, 2026, bringing the total dividends declared to date to 26.8 sen per ordinary share.
Sunway Construction Group managing director Liew Kok Wing said, “We are pleased to deliver another quarter of strong earnings growth, reflecting the strength of our project portfolio and disciplined execution. With RM6.85 billion in new orders secured year-to-date, we have surpassed our initial RM6 billion order book replenishment target for 2026 and are now targeting RM7-9 billion for the full year. Our outstanding order book has reached an all-time high of RM10.5 billion, providing strong earnings visibility and positioning the group well for sustainable growth.”
Liew added, “The rapid adoption of artificial intelligence, cloud computing and digitalisation continues to drive demand for hyperscale data centres across the region. Malaysia remains well-positioned as a preferred investment destination, supported by ongoing investment in digital infrastructure, power transmission and renewable energy initiatives. This is expected to sustain a healthy pipeline of data centre investments over the medium term.”
During the first half of 2026, he said, the group secured three new data centre-related projects, further strengthening their presence in the sector.
Liew said the group remains selective, prioritising projects with healthy margins and achievable timelines.
“We remain optimistic about FY2026, supported by our record-high order book, solid financial position, expanding capabilities and strong execution track record.”
